NAIROBI (Xinhua) -- The International Monetary Fund (IMF)
pledged on Wednesday to assist Kenya to lower its fiscal
deficit.

IMF Resident
Representative for Kenya Jan Mikkelsen told Xinhua that
Kenya’s fiscal deficit that currently stands at
approximately 8 percent of the gross domestic product
(GDP) against a government target of 6 percent is not
sustainable in the long run.

“We are
therefore ready to work closely with government to
reduce the fiscal deficit in order to reduce the amount
of borrowing required,” Mikkelsen said during the launch
of the Kenya Association of Manufacturers, Manufacturing
Priority Agenda (MPA) 2018.

Mikkelsen
said Kenya’s relatively high fiscal deficit for the
2017/2018 financial year has been caused by prolonged
electioneering period in 2017 together with the drought
that hit the agricultural sector.

He noted
that the country has however implemented a number of
measures to lower the fiscal deficit, which has declined
as compared to the last financial year.